The Oconomowoc Area School District Board members adopted a budget and certified a tax levy resulting in a mill rate decrease of $.35 compared with 2024-25, which is the lowest mill rate in the District’s history. The Fund 10 Operating Budget totals $75.5 million, which is supported by a $51.9 million tax levy. The property tax levy is the local portion of State-local funding partnership, better known as Revenue Limit Authority. The State is providing funding of $11.9 million through Equalization Aid. The combination of State Aids and the local property tax account for 85.2% of the District’s overall revenues.
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Equalization Aid
The State’s budget did not include increased funding for Equalization Aid, which was a challenge for the District’s Revenue Limit Authority. The loss of Aid provided an unfavorable result for our community, shifting more of the State-local funding partnership away from the State, raising the property tax levy. While the 2025-26 Equalization Aid amount was a 17% loss from the prior year, it approximates the average Aid received over the past decade.
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The District’s Revenue Limit Authority and the local property tax were also challenged by the State’s budget provision that provided increases for Independent Charter Schools (ICS) and voucher programs, exceeding the increase provided to public schools. The local property tax includes $3.2M for voucher programs and $2.3M for ICS. Of the $5.79 mill rate for 2025-26, $.29 is for voucher programs and $.21 is for ICS. The challenge with ICS funding is compounded for OASD because our revenue limit authority per student ($11,762.50) is less than the required funding for ICS ($12,369), resulting in $270,000 of the District’s budget being diverted from our students to make the required ICS payment. Levying for these programs is required by the State and is not at the discretion of public-school districts.
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Mill Rate
Overall, the 2025-26 budget decreased .06% compared with the 2024-25 budget. The mill rate decreased by $.35, from $6.14 to $5.79 per $1000 of equalized property values. An 8.8% increase in property values throughout the District (including approximately a 2% increase from net new construction) helped to control the mill rate change despite a $1.5M increase in the overall tax levy.
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School Levy Tax Credit
For 2026 tax bills, the State increased funding of property tax relief with $125,300,000 of additional funding for the School Levy Tax Credit (SLTC). The SLTC impact results in a larger credit to the school levy on a homeowner’s tax bill, which reduces the school district’s portion of their tax bill. The increased State levy funding will help to offset the increased school levy for 2025-26.
Summary
Each October, the Board must adopt the budget, certify the tax levy, and establish the tax rate after the Department of Revenue determines property values in the District and the State certifies Equalization Aid (its portion of educational funding). Tax bills are sent to property owners in December.
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OASD Expenditures By Function
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The 2025-26 budget is balanced, while incorporating key initiatives, through careful control of costs and strategic allocation of limited resources. This budget supports the instructional mission of OASD as demonstrated by sustaining these key initiatives:
- Pupil-to-teacher ratios which are appropriate for each grade, and which support a positive environment for learning.
- Support for the Strategic Plan’s focus on literacy including professional learning of staff, instructional materials, and curriculum implementation.
- A Multi-Level Systems of Supports (MLSS) process that meets the needs of all learners and decreases the need for referral to special education.
- Math and literacy intervention time at the elementary and intermediate schools to address learning achievement gaps and improve learning growth.
- MLSS facilitator roles at the intermediate schools to improve data-informed decision-making to mobilize resources in pursuit of meeting the needs of all learners.
- Consistent annual funding for curriculum materials, instructional technology, and staff development, all which place OASD among the leading school districts in Wisconsin.
- A technology plan that supports a 1:1 student-to-device ratio in grades 1 through 12, 2:1 student-to-device ratio in 5K, and 5 iPads per classroom in 4K along with reliable access supported by a robust network and infrastructure.
- Continued support of a student life-ready competencies screener, Life Ready curriculum, and pertinent staff professional development.
- Student mental health and well-being is supported by providing efficient access to community partnerships with GALS Institute and Family Services of Waukesha
- Student services staffing aligned with a staffing metric that balances caseloads and provides support for students.
- A commitment to facility preventative maintenance, renovation, infrastructure improvements, and long-term capital project funding.
- A sustainable educators’ compensation model that provides competitive compensation and attracts and retains OASD’s high-quality certified staff.
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Moody’s Investors Service upgraded the Oconomowoc Area School District’s issuer and bond ratings from Aa2 to Aa1 and also assigned an Aa1 rating to the District’s General Obligation School Bonds, Series 2024 with a par amount of $19.3 million. The upgrade reflects the District’s improving financial position with strong reserves and expanding tax base. With the upgraded rating, OASD is one of only 12 WI districts to maintain the exemplary rating, and only 3 districts are rated higher.
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The Oconomowoc Area School District (OASD) School Board approved the finalized 2025-26 budget and the annual property tax levy on October 30, 2025. For most residents, school funding remains an afterthought for much of the year, but as local property tax bills arrive in early December, the cost and impact of publicly funded education options take on a more immediate role. For the majority of us, we simply look at our school tax bill and compare it to the previous year. It seems logical that if your taxes have increased, then spending in our local school district has increased. However, that’s not necessarily the case because public school finance is anything but logical - it is driven by several complexities, including regular changes to state aid, changes to student population, and increased funding for public charter schools and the private school voucher system.
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State Equalization Aid & Property Tax Levy
The two largest funding sources for public education are state-funded equalization aid and the property tax levy, which is paid by residents through their annual tax bill. The OASD 2025-26 operating budget is $75.5 million, which is supported by a $51.9 million tax levy. In the OASD, the property tax levy is the largest portion of funding, and the OASD 2025-26 tax levy resulted in a mill rate of $5.79, a decrease of $.35 from 2024-25. State equalization aid for the OASD totals $11.9 million for 2025-26.
Image source: Wisconsin Association of Business Officials (WASBO)
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Impacts of State Equalization Aid
OASD’s equalization aid has traditionally varied from year to year, and we have seen a decline in state aid over the past several years, including a 17% decrease for the current fiscal year. That means the state is funding 17% less of the district’s revenue for 2025-26, shifting that funding onto the local tax base in the form of property taxes.
Chart: OASD state equalization aid over time. Equalization aid is the portion of OASD revenue funded by the State, and it has fluctuated year-to-year, with declines in the last few years.
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While the state’s 2025-2027 budget included additional funding for K-12 education across the state, for the first time in recent history, it did not include any increase in state equalization aid. As a result, it is likely that property taxes will increase across the state as the state funding formula shifts more public education funding to the local property tax levy.
Fortunately, OASD residents will not see a significant local property tax increase due to the early repayment of capital referendum debt, lowering the district’s debt service levy. Strategically managing debt service has been prioritized by our School Board for many years, and the positive impact of that forward thinking benefits our community.
Tax Levy for Independent Charter Schools & Voucher Programs
Another factor increasing the local property tax levy is the State’s budget provision that gives significant funding increases to Independent Charter Schools (ICS) and voucher school programs. During the past two state budget cycles, both programs have seen increases in funding at a higher rate than the funding provided to public schools. In the Oconomowoc area, the local property tax levy includes $3.2M for voucher school programs and $2.3M for Independent Charter Schools. Of the $5.79 mill rate approved by the OASD School Board for 2025-26, $.29 is for voucher programs and $.21 is for Independent Charter Schools. Levying tax dollars for these programs is required by the State and is not at the discretion of public school districts.
Revenue Limit Authority
The Revenue Limit is a State-imposed maximum amount of money a school district can receive to operate. Revenue limits were created by State policymakers in the 1993-94 school year and serve to control the amount of money a district can receive through a combination of state aid and local property taxes. Public school districts use the Revenue Limit Formula dictated by the State to understand the maximum allowable property tax levy.
In the 2025-26 school year, the State provided additional funding per student, but the amount varies widely depending on where that child attends school. The chart below outlines the amount OASD will receive, per student, in 2025-26 and 2026-27 compared to the amount Independent Charter School and voucher program students receive.
School Type
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2025-26 Revenue Limit Increase
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2026-27 Revenue Limit Increase
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| OASD & WI Public School Districts |
$325 per pupil |
$325 per pupil |
| Independent Charter Schools |
$640 per pupil |
$428 per pupil |
| K-8 Private School Voucher |
$640 per pupil |
$428 per pupil |
| 9-12 Private School Voucher |
$640 per pupil |
$428 per pupil |
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The Oconomowoc Area School District provides high value to our students, families, and community. While the district is driven to empower our next generation of learners and leaders, OASD is considered a low-revenue district by the State. This means that our per-pupil revenue lags the vast majority of school districts across the state, including funding for independent charter schools and private high school vouchers. The per-pupil revenue limit, for which the vast majority of public school funding is tied, varies among districts and publicly funded options. These differences in funding are driven by both historical funding of local districts and the increasing impact of local operational referendums. Per-pupil revenue authority for local school districts and other publicly funded options is available below.
School District or Publicly Funded Option
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2025-26 Per-Pupil Revenue Limit
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| Kettle Moraine |
$14,048.47 |
| Hamilton |
$13,549.87 |
| *9-12 Voucher Programs |
$13,371.00 |
| Elmbrook |
$13, 017.69 |
| New Berlin |
$12,649.67 |
| Menomonee Falls |
$12,407.19 |
| Independent Charter Schools |
$12,369.00 |
| Arrowhead |
$11,800.34 |
| Pewaukee |
$11,779.59 |
| Oconomowoc |
$11,762.50 |
| Waukesha |
$11,656.26 |
| Mukwonago |
$11,650.00 |
| *K-8 Voucher Programs |
$10,877.00 |
*Transportation costs paid for by the local public school district.
Our district leaders and school board have worked hard for many years to manage district finances responsibly with forethought in our approach to savings and debt management. That has empowered us to operate with a balanced budget, focused on programs and staffing that increase student achievement. Thank you for your support of our unrivaled community and district.
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